How Telegram’s Tether Integration Boosts Crypto Adoption

Telegram, the popular messaging app with over 55 million daily users, has recently added support for Tether (USDT), the world’s largest stablecoin, on its wallet bot. This means that users can now send and receive USDT directly from their chats, as well as buy, swap, and make P2P trades with the stablecoin. 

In this blog post, we will explore what this integration means for Telegram, Tether, Tron, and the crypto industry as a whole.

What is Tether and why is it important?

Tether is a cryptocurrency that is pegged 1:1 to the U.S. dollar, meaning that each USDT token is backed by one dollar in reserve. Tether aims to provide a stable and transparent alternative to fiat currencies, as well as a bridge between the traditional and crypto worlds.

Tether is the most widely used stablecoin in the crypto market, with a market capitalization of over $78 billion as of March 2023. It is also the most liquid and traded cryptocurrency, accounting for more than half of the total crypto trading volume.

Tether runs on several blockchains, including Bitcoin, Ethereum, Tron, EOS, Solana, and Algorand. Each blockchain has its own version of USDT, with different technical features and advantages. For example, USDT on Ethereum follows the ERC20 standard, while USDT on Tron follows the TRC20 standard.

What is Tron and why did Telegram choose it?

Tron is a blockchain platform that focuses on decentralized file storage and content distribution. It was founded by Justin Sun in 2017 and has its own native token called TRX. Tron claims to offer high scalability, low fees, and fast transactions for its users and developers.

Telegram chose to integrate USDT on Tron because of its compatibility with its wallet bot, which already supports Bitcoin and Telegram’s own token, TON. TON stands for Telegram Open Network, which was a project to create a scalable and decentralized blockchain platform for Telegram’s ecosystem. However, TON was abandoned by Telegram in 2020 after facing legal issues with the U.S. Securities and Exchange Commission (SEC).

By adding USDT on Tron, Telegram hopes to enhance its crypto capabilities and offer more options for its users. According to Telegram’s announcement:

“You can now buy, swap, and make P2P trades with Tether USDT (TRC20). You can also directly send USDT to your friends with no transaction fees.”

What does this integration mean for crypto adoption?

The integration of USDT on Telegram’s wallet bot is a significant development for the crypto industry, as it brings stablecoin payments to millions of users who may not be familiar with or interested in crypto otherwise.

Stablecoins offer many benefits that other cryptocurrencies provide but without the price volatility that often bedevils the likes of Bitcoin (BTC) and Ethereum (ETH). They can be used as a store of value, a medium of exchange, a unit of account, and a hedge against inflation. They can also facilitate cross-border remittances, e-commerce transactions, DeFi applications, and more.

By enabling USDT payments on Telegram, users can enjoy these benefits without having to leave their chats or download another app. They can also access a global and open market of buyers and sellers who accept USDT as a form of payment.

Moreover, by choosing USDT on Tron, users can benefit from the low fees and fast transactions that Tron offers compared to other blockchains. This can make USDT payments more convenient and accessible for users who may not want to deal with high gas fees or network congestion.

In conclusion, Telegram’s integration of USDT on Tron is a positive step for crypto adoption, as it exposes millions of users to the advantages of stablecoins and blockchain technology. It also shows that Telegram is still committed to supporting crypto innovation despite its setback with TON.